Alphabet stock sheds $700B as its AI bills climb
After leading the Magnificent 7 over much of the last 16 months, the tech giant is on shakier footing.
Alphabet's stock has plummeted by more than 15% from its May peak, resulting in a loss of approximately $700 billion in value, due to growing concerns over its increasing AI expenses and the lack of a significant technological breakthrough. The tech giant is now facing a more precarious position following the departure of its top scientist, the transfer of its brightest AI talent to another role, and delays in the launch of its latest Gemini model.
Despite these setbacks, Google's extensive product range, deep talent pool, and long-standing investment in AI have been touted as potential factors for a potential turnaround, with a recent reshuffle including the return of co-founder Sergey Brin to his day-to-day responsibilities.
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